Posted by: BeerIsGood In reply to: the big guy who wrote msg# 69187 Date:9/9/2010 11:19:53 PM Post #69204 of 87910
The whole thing is based on a simple premise: make oil for $10/barrel and sell for $70/barrel. That likely is NOT REALISTIC.
Seems realistic to me.
My estimated Cost for a JV site
Initial Processor Cost $200,000 Engineering $50,000 (don't think this will be needed but added anyways) Legal / Professional Fees / Permits $20,000 Initial Setup of Processor(Site Development/Rigging/Assembly) $75,000 Feedstock Hoppers $10,000 Shredder & conveyors (New) $80,000 Gas compression system $75,000 Natural Gas Generator $50,000 Front End Loader for moving piles of Feedstock(used) $20,000 Forklift(used) $10,000 Fire Suppression system(if needed) $40,000 Safety barriers for containing spills(fabricated concrete walls if needed) $20,000 Unknowns $100,000
TOTAL $750,000(add land/building and your at about $1 million investment) Monthly loan payment for 80% of the $750K: $600,000 spread out 10 years at 8% = $7,300